Answer:
C. 50%
Step-by-step explanation:
Lets consider that the mass of taffy is m and its initial velocity is u and final velocity is v. Momentum is conserved so we can write it as,

The initial kinetic energy =

As the Kinetic energy partly converted into heat.
The final kinetic energy =
=

Change in the kinetic energy =

now we can determine the fraction of kinetic energy that has turned into heat
=
=

= 50%